AsiaMedic to buy LuyeEllium for S$42 million

SINGAPORE - AsiaMedic has entered into a conditional sale and purchase agreement with the shareholders of LuyeEllium Healthcare to acquire the company for S$42.2 million.

LuyeEllium provides hospital management services to hospitals in South Korea and China.

When the acquisition is completed, LuyeEllium will be a wholly-owned subsidiary of the company, AsiaMedic told the Singapore Exchange in a filing on Thursday.

The net asset value and net tangible assets of LuyeEllium was about 5.62 billion Korean won (S$6.74 million) as at December 31, 2016.

AsiaMedic said it will be appointing an independent valuer to prepare a valuation report onLuyeEllium.

The consideration will be fulfilled via the issuance of 527.1 million new shares, at the issue price of eight cents per share.

"The proposed acquisition represents a good opportunity for the group to broaden the range of healthcare services it offers. In addition to the existing advanced diagnostics imaging and wellness services, the proposed acquisition will enable the group to provide non-clinical support and consultancy services to medical institutions as well as be involved in the operation of the post-partum centre," said AsiaMedic.